The U.S. Supreme Court will grant a hearing on a case related to state vs. federal authority to regulate operating subsidiaries of nationally chartered banks. In a Sixth Circuit U.S. Court of Appeals decision in December, Judge Boyce F. Martin Jr. affirmed a district court judgment which found that federal regulations "preempt conflicting Michigan laws" relating to authority of federal bank subsidiaries. The case, Wachovia Bank v. Watters, was brought by Linda A. Watters, commission of the Michigan Office of Insurance and Financial Services. Wachovia Bank, a national banking firm, launched Wachovia Mortgage in January 2003 as a wholly owned operating subsidiary in Michigan, according to the court ruling. In April 2003, Wachovia Mortgage advised the state of Michigan that it was su...
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